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March 19, 2001

Taisho suspends operations at Medwell Taisho

Taisho Pharmaceutical Co., Ltd. (President: Akira Uehara) has announced that it is suspending operations of a subsidiary, Medwell Taisho Co., Ltd., from the end of June 2001.

The company established Medwell Taisho as a wholly owned subsidiary in January 1999, and began operations in April of that year. With deregulation in the Japanese medical market, coupled with increases in health care costs, Medwell Taisho was formed to help its parent supply high-quality generic drugs at lower prices.

However, the expected benefits of this deregulation have yet to be fully realized because the economy has remained stagnant. Under current market conditions, considerable time and further deregulation would be necessary before Taisho could achieve its objectives for generic drugs, and it is therefore forced to suspend operations of Medwell Taisho. All 30 of Medwell's employees will be transferred to positions within the parent company.

In two years of operating this subsidiary, Taisho gained invaluable experience in the generic drug business. In preparation for the future, it will continue research on generic drugs at its Omiya research facility, which was also established in 1999.

Subsidiary overview
Company name Medwell Taisho Co., Ltd.
Established January 6, 1999
Began operations April 1, 1999
Suspended operations June 30, 2001
Head office 1-403 Yoshino-cho, Omiya, Saitama (on the grounds of the Taisho plant)
Branch offices Tokyo office (in the Medwell Taisho head office) and Fukuoka office
Business activities
* R&D, production, sales and export of: medical products, quasi-drug products, cosmetic products, medical devices, sterilizing materials, veterinary medical products, pesticides, industrial chemicals, poisons, deleterious substances, food additives and distilled alcoholic beverages
* Production, sales and export of raw materials used in medical products
* Medical product information services
* Health care and health care management information services
* Support for each of the above
Capital stock 200 million yen (wholly owned by Taisho)
President Akira Ohira
Total staff 30